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global manufacturing and supply

global manufacturing and supply
chain management.

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globalmanufacturing Presentation Transcript

  • 1. Global Manufacturing and Supply Chain Management International Business (MB 40)
  • 2. Outline
    • Dimensions of Global Manufacturing
    • Elements of Global Supply Chain Management
    • Role of Information Systems
    • Issues of Quality and Global Supply Chain
    • Inventory Management and Global Supply Chain
    • Transportation Networks
  • 3. Why Manufacture Globally?
    • Cost
    • Access to raw-material
    • New Markets
    • Multi-Point Communication
    • Overall goal, improvement in cash flows of the parent firm to maximize shareholder wealth
  • 4. Global Manufacturing Strategies
    • Manufacturing
      • Setting up a subsidiary versus Virtual Manufacturing
      • Depends on manufacturing compatibility
    • What is manufacturing compatibility?
    • Compatibility depends on:
      • Efficiency
      • Dependability
      • Quality
      • Flexibility
      • Innovation
  • 5. Global Manufacturing Strategies
    • Manufacturing Configuration
      • Should manufacturing be centralized in one country or should we have manufacturing facilities in specific zones to service those zones or should we go multidomestic with a facility in each country
      • When should we have a centralized location?
      • When should we go for multidomestic location?
    • Coordination and Control
      • Linking or integrating activities into a unified system is called COORDINATION
      • Defining organizational structure and reporting systems to ensure timely implementation of policies is termed as CONTROL
  • 6. Global Manufacturing Strategies
    • Plant Location Strategies
      • Transportation costs, duties, proximity to customers and suppliers, foreign exchange rate risk, economies of scale in the production process, government incentives, climate, technological requirements of the manufacturing process.
    • Plant Layout Planning Strategies
      • physical arrangement of economic activity centers within a manufacturing facility
      • Every manufacturing facility cannot have the same type layout—local conditions such as cost of labor, cost of land, local culture must be considered in deciding about the plant layout
  • 7. Global Supply Chain Management
    • Meaning of Supply Chain Management
      • Describes managers’ effort to oversee the flows of raw materials, components, information, and finance through their network of suppliers, assemblers, and distributors, and customers located around the world.
    • Elements of Supply Chain Management
    • Supply Chain Management and Enterprise Resource Planning (ERP)
    • E-Commerce
    • Internet, intranet, and extranet
  • 8. Role of Information Systems and Technology
    • Key to successful global supply chain management
  • 9. Supply Chain Management
    • LINKAGE OF ACTIVITIES
      • BUYING
      • MAKING
      • MOVING
    • INTEGRATES
      • SUPPLIER
      • DISTRIBUTOR
      • LOGISTICS REQUIREMENTS
  • 10. MAJOR ENTITIES Supplier Manufacturer Distributor Retail Outlets Customer Capacity, inventory levels, delivery schedule, payment terms Orders, return requests, repair and service requests, payments
  • 11. What Does Supply Chain Involve?
    • NETWORK OF FACILITIES
      • MATERIALS
      • RAW MATERIALS – PRODUCTS
      • FINISHED PRODUCTS
    • LINKS
      • PROCUREMENT
      • LOGISTICS
    • ELIMINATE
      • REDUNDANCY
      • DELAYS
      • RESOURCES
  • 12. What Does Supply Chain Involve?
    • RIGHT AMOUNT OF PRODUCT
      • SOURCE
      • CONSUMPTION POINT
      • LEAST
        • TIME
        • COST
  • 13. ROLE OF INFORMATION SYSTEMS
    • coordinate, schedule, and control
      • procurement,
      • production,
      • inventory management, and
      • delivery of products and services
  • 14. ROLE OF INFORMATION SYSTEMS
    • Integrate
    • demand planning,
    • production forecasting,
    • materials requisition,
    • order processing,
    • inventory allocation,
    • order fulfillment,
  • 15. ROLE OF INFORMATION SYSTEMS
    • transportation services,
    • receiving, invoicing, and payment.
  • 16. Supply chain management systems
    • Intranets
    • Extranets
    • Supply chain management software
  • 17. EXAMPLE Enterprise System Sales Representative (Brussels) Factory (Hong Kong) Warehouse Customer Service Representative Accounting Balance Sheets Accounts Receivables/ Payables Payroll Available Cash Cost Centers Customer Order Shipment Date Stock of Parts Track Production online replenishes Corporate Headquarter (London)
  • 18. Quality and Supply Chain
    • Meaning of Quality
    • Meeting or exceeding the expectations of a customer
    • Total Quality Management (TQM) versus Acceptable Quality Level (AQL)
    • Zero defects and TQM
  • 19. Challenges in Supply Chain Management
    • Operational Threats
    • Different languages
    • Differences in Currencies
    • Differences in Measurement Systems (metric versus decimal)
    • Strategic Challenges
    • National Cultures
    • Technological capabilities
    • Tax Policies
    • National Culture
    • Western culture typically foster adversarial positions in which buyers and sellers share as little information as possible.
    • Toyota requires a broad understanding of a potential supplier’s manufacturing capabilities and financial position
  • 20. Supplier Networks
    • Meaning of outsourcing
    • The process of a firm having inputs supplied to it from outside suppliers for the production process.
    • Domestic outsourcing versus global outsourcing
    • Why go for domestic sourcing?
    • Why go for global sourcing?
    • Why pursue global outsourcing?
    • Reduce costs
    • improve quality
    • exposure to global technology
    • improve delivery of supplies
    • access to materials non-available otherwise
    • establish presence in a foreign market
    • to compete in the global market
  • 21. Outsourcing Configurations
    • Vertical Integration
    • Arm’s-length purchases from outside suppliers
    • Japanese keiretsu relationships with suppliers
  • 22. Make or buy Decisions
  • 23. Supplier Relations
    • How much should be the degree of involvement with your suppliers?
  • 24. Inventory Management
    • Outsourcing from around the world and its impact on inventory management
    • issues of distance, time, and uncertainty in foreign environment
    • Just-In-Time Systems